Transfer Pricing – Super-normal profit cos must be excluded from comparables. DRP must not pass cursory / laconic orders

It is undisputed that these three companies have shown super normal comparable profits as compared to the other comparable. There exclusion from the list of comparable is quite correct. By excluding these three companies from the com parables and showing the computation on the basis of TPO data the arithmetic mean of OP/OC to 17.15% which falls within the +-5% range as permitted by section 92(C)(2). Hence, we find considerable cogency in the arguments of the ld. counsel of the assessee in this regard.

We further find that asse

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